Pakistan Plans Private Management for PIA by April with Arif Habib Corporation Acquiring Seventy-Five Percent Stake to Improve Operations and Boosting Travel Growth

Published on December 25, 2025

The government of Pakistan is making bold moves to transform the air transport sector in the country by allowing the privatization of the national carrier, Pakistan International Airlines (PIA), by obtaining a 75% stake on behalf of Arif Habib Corporation. This historic decision will become a reality by April 2026 and will signal a make-or-break shift in the fate of this airline and the travel and tourism sector in Pakistan.

With an outlay of Rs135 billion ($482 million), this new joint ownership is expected to bring to PIA much-needed resources, as well as aircraft management expertise to enable this airline to raise the bar as far as tourism is concerned. With private ownership at play, there are hopes of improvement in flight service standards and an extension of routes to include new destinations across the world.

Boosting Pakistan’s Tourism Appeal Through Enhanced Connectivity

The privatization of PIA holds immense potential to boost tourism by improving air connectivity and creating more direct routes for travelers. With an increased focus on international expansion, PIA can cater to growing tourism demand, offering easier access to Pakistan from key business hubs and tourist markets worldwide.

As global travel rebounds, the expansion of PIA’s route network will be crucial in supporting tourism growth in Pakistan, especially as the country seeks to promote its cultural attractions, natural landscapes, and business opportunities. More affordable and efficient air travel will drive greater tourism flows from Europe, North America, the Middle East, and Asia, while positioning Pakistan as a key regional tourism hub.

Strengthening Business and Leisure Travel to Pakistan

PIA’s privatization is also expected to enhance business travel between Pakistan and global destinations, fostering economic growth through improved trade relations, corporate events, and business tourism. As PIA improves its long-haul services and international routes, Pakistan will become a more attractive destination for international business and investment, supporting economic development across the country.

On the leisure tourism front, the airline’s improved international connectivity will allow more travelers to visit Pakistan for cultural tourism, adventure travel, and eco-tourism. As tourism recovery continues to gain momentum globally, Pakistan’s ability to offer convenient flight options will boost its appeal as a top destination for travelers seeking authentic experiences in a region rich in history, culture, and natural beauty.

Future Impact: Strengthening Pakistan’s Position in the Global Tourism Market

Looking ahead, the future impact of PIA’s privatization on Pakistan’s tourism sector is significant. By improving air connectivity, service quality, and operational efficiency, PIA will be better equipped to meet the growing demand for international travel, especially to and from Pakistan’s key source markets. This will not only foster greater tourism exchanges between Pakistan and the rest of the world, but it will also provide an opportunity to capitalize on new markets, particularly from emerging regions such as Southeast Asia and Africa.

Increased flight frequencies, better route options, and competitive pricing will make Pakistan more accessible to tourists and business travelers, supporting regional economic development and encouraging the growth of local hospitality and tourism industries. The long-term sustainability of Pakistan’s aviation and tourism sectors will depend on the successful integration of modernized aviation infrastructure with the country’s efforts to develop a competitive tourism product.

Supporting Sustainable Tourism Growth and Regional Connectivity

As Pakistan’s tourism sector expands, the privatization of PIA also aligns with broader global trends toward sustainable tourism and eco-friendly travel. The integration of green technologies in PIA’s fleet and sustainable practices in its operations will appeal to eco-conscious travelers, ensuring that Pakistan continues to meet the growing demand for responsible travel options.

Moreover, the introduction of new air routes and improved regional connectivity through PIA’s expanded network will boost tourism to Pakistan’s regional destinations. As more travelers explore Pakistan’s diverse landscapes—from its mountainous regions to its coastal areas—tourism growth will become more evenly distributed, reducing the pressure on overcrowded urban hubs like Islamabad and Karachi.

A Bright Future for Pakistan’s Aviation and Tourism Industries

The privatization of PIA represents a new dawn in the development of the aviation sector in Pakistan, with increased international linkages, more air routes, and better standards topping this list. Through increased business travel and tourist experiences, it is clear that PIA will be at the forefront of making Pakistan a tourist destination in the world, thus contributing towards economic development.

The future of tourism in Pakistan will be based on efficient and accessible air transport, and policies will ensure that Pakistan has a strong position in the growing tourist industry around the globe. As there will be increased air routes and international collaborations and a sustainable approach towards development, the privatization of PIA will also have a strong positive impact towards making Pakistan a major tourist and business destination in South Asia.

Image Source: PIA